Corporate & Commercial
Employer Obligations in Turkey: 2026 Guide for Companies
Foreign-owned companies in Turkey face strict SGK, payroll and Labor Law 4857 duties. Learn the key 2026 employer obligations and how to stay compliant.
Hiring your first employee in Türkiye is a milestone — and a legal turning point. The moment a foreign-owned company places someone on payroll in Istanbul, a dense web of employer obligations in Turkey attaches automatically, whether or not you have read the rulebook. Turkish labor and social-security law is protective, prescriptive, and actively enforced, and the cost of getting it wrong is financial, retroactive, and sometimes personal. If you run a foreign-invested company and want to build a compliant team here, this 2026 guide explains what the law actually requires and where the real risks sit.
Key Takeaways: What You Need to Know
Foreign-owned companies are treated as ordinary Turkish employers — the same Labor Law No. 4857 and social-security duties apply in full.
You must register each worker with the Social Security Institution (SGK) before the first day of work, not after.
The 2026 gross minimum wage is TRY 33,030 per month, and employer social-security costs add roughly 20–22% on top of gross salary.
Severance (kıdem tazminatı) and notice (ihbar) pay are mandatory statutory rights that cannot be waived in advance.
Every workplace — regardless of size — must complete an occupational health and safety risk assessment under Law No. 6331.
Non-compliance triggers administrative fines, retroactive premiums, and back-pay exposure that can dwarf the original saving.
Who Must Comply: Foreign-Owned Companies Are Treated Like Any Turkish Employer
A common and expensive misconception among international founders is that a foreign-owned entity enjoys a lighter regulatory touch. It does not. Once your company is registered in Turkey — whether a limited liability company (LLC) or a joint-stock company (JSC) — and it employs staff who work here, it is a Turkish employer for all purposes under Labor Law No. 4857 (İş Kanunu) and Social Security Law No. 5510.
This means the nationality of your shareholders is irrelevant to your labor-law duties. The same rules on contracts, wages, working hours, leave, health and safety, and termination bind you exactly as they bind a domestic company. Choosing the right legal vehicle at the outset — see our guide on company formation in Turkey — shapes your tax profile, but it does not reduce your obligations as an employer. Structuring these duties correctly from day one is where an experienced corporate lawyer in Turkey adds the most value.
SGK Registration: Your First and Most Time-Sensitive Duty
Before an employee begins work, you must register them with the Sosyal Güvenlik Kurumu (SGK — Social Security Institution). Turkish law is unforgiving on timing here: the employee-entry declaration (sigortalı işe giriş bildirgesi) must be filed one day before the employee's first working day. Registering a worker late, or not at all, is one of the most heavily penalized breaches in the entire system.
Your ongoing SGK duties do not stop at registration. Every month you must file the combined withholding and premium-service declaration (muhtasar ve prim hizmet beyannamesi), report each worker's days and earnings, and pay both the employee and employer social-security premiums by the statutory deadline. When you open a physical workplace, you must also file a workplace notification (işyeri bildirgesi) to obtain an SGK workplace registration number.
Workplace registration: file the işyeri bildirgesi when the workplace is opened and staff are hired.
Employee entry: file the işe giriş bildirgesi one day before the employee starts.
Monthly declaration: submit the muhtasar ve prim hizmet beyannamesi and pay premiums each month.
Employee exit: file the işten çıkış bildirgesi within ten days of termination.
Setting up SGK registration for a new foreign-owned entity in Istanbul? Contact Istanbul Attorneys to structure your onboarding correctly from the first hire: +90 544 809 1942 | WhatsApp
Payroll, Withholding, and the 2026 Minimum Wage
As an employer you are the collection agent for the Turkish state. From each salary you must withhold income tax (gelir vergisi stopajı), stamp tax (damga vergisi), and the employee's share of social-security and unemployment-insurance premiums, then remit them together with your own employer contributions. Wages must be paid in Turkish lira through a bank, and payslips must be issued.
The 2026 Numbers You Need
For 2026, the gross statutory minimum wage is TRY 33,030 per month (roughly TRY 28,075 net). No employee may be paid below this floor. On top of the gross salary, the employer bears social-security and unemployment contributions that add approximately 20–22% to labor cost, depending on sector and any applicable incentives. The monthly earnings ceiling subject to SGK premiums was raised in 2026 to nine times the minimum wage, increasing the premium base for higher-paid staff.
Because these parameters — the minimum wage, the premium ceiling, and contribution rates — are revised at least annually, payroll built on last year's figures quickly falls out of compliance. Employee payroll data is also personal data, so your processing must respect Turkey's data-protection regime; see our note on KVKK compliance for foreign companies.
Common questions about this topic
Do foreign-owned companies in Turkey have the same employer obligations as Turkish companies?
Yes. Once your company is registered in Turkey and employs staff who work here, it is a Turkish employer under Labor Law No. 4857 and Social Security Law No. 5510. The nationality of the shareholders does not reduce any labor, payroll, or social-security duty.
When must I register a new employee with the SGK?
The employee-entry declaration must be filed with the Social Security Institution one day before the employee's first working day. Late registration is one of the most heavily penalized breaches in the system, so onboarding paperwork should be prepared in advance.
What is the minimum wage in Turkey for 2026?
The 2026 gross statutory minimum wage is TRY 33,030 per month, roughly TRY 28,075 net. No employee may be paid below this floor, and employer social-security and unemployment contributions add approximately 20–22% on top of the gross figure.
How is severance pay calculated in Turkey?
Severance (kıdem tazminatı) is 30 days' gross salary for each completed year of service, subject to a statutory ceiling per year that is revised periodically. It applies after at least one year of service where the employee leaves under qualifying circumstances, and it cannot be waived in advance.
Can my Turkish company hire foreign employees?
Yes, but foreign employees generally require an employer-sponsored work permit under Law No. 6735, and the workplace must usually employ five Turkish citizens per foreign worker and meet capital and payroll thresholds. These rules apply in addition to ordinary labor-law duties.
What happens if I fail to register an employee with the SGK?
Unregistered employment exposes the company to administrative fines per worker, retroactive premium assessments with interest, and possible loss of incentives. The former employee can also claim unpaid entitlements in labor court, where presumptions often favor the worker.
This guide is general information on Turkish law, not legal advice on your own matter. Rules and practice change; check the position before you act.